Difference between conda install and conda update, for an already installed package

Question

I have a few issues with my current installation of anaconda. As per what I read, they might be solved with conda update conda. But that (also tried conda update -n base -c defaults conda) gets stuck at

> conda update -n base -c defaults conda
Collecting package metadata (repodata.json): done
Solving environment: -
The environment is inconsistent, please check the package plan carefully
The following packages are causing the inconsistency:

  - defaults/win-64::anaconda==5.2.0=py36_3
  - defaults/win-64::anaconda-navigator==1.8.7=py36_0
  - defaults/win-64::jupyter==1.0.0=py36_4
  - defaults/win-64::matplotlib==2.2.2=py36h153e9ff_1
  - defaults/win-64::navigator-updater==0.2.1=py36_0
  - defaults/win-64::pyqt==5.9.2=py36h1aa27d4_0
  - <unknown>/win-64::qt==5.9.7=vc14h73c81de_0
  - defaults/win-64::qtconsole==4.3.1=py36h99a29a9_0
  - defaults/win-64::scikit-image==0.13.1=py36hfa6e2cd_1
  - defaults/win-64::seaborn==0.8.1=py36h9b69545_0
  - defaults/win-64::spyder==3.2.8=py36_0
/

(rolling bar). This is a problem per se and I mean to solve it. So I tried

> conda install conda
Collecting package metadata (repodata.json): done
Solving environment: |
The environment is inconsistent, please check the package plan carefully
The following packages are causing the inconsistency:

  - defaults/win-64::anaconda==5.2.0=py36_3
  - defaults/win-64::anaconda-navigator==1.8.7=py36_0
  - defaults/win-64::jupyter==1.0.0=py36_4
  - defaults/win-64::matplotlib==2.2.2=py36h153e9ff_1
  - defaults/win-64::navigator-updater==0.2.1=py36_0
  - defaults/win-64::pyqt==5.9.2=py36h1aa27d4_0
  - <unknown>/win-64::qt==5.9.7=vc14h73c81de_0
  - defaults/win-64::qtconsole==4.3.1=py36h99a29a9_0
  - defaults/win-64::scikit-image==0.13.1=py36hfa6e2cd_1
  - defaults/win-64::seaborn==0.8.1=py36h9b69545_0
  - defaults/win-64::spyder==3.2.8=py36_0
done


==> WARNING: A newer version of conda exists. <==
  current version: 4.10.3
  latest version: 22.9.0

Please update conda by running

    $ conda update -n base -c defaults conda



## Package Plan ##

  environment location: C:\Users\ry16205\Documents\appls_mydocs\development\anaconda3

  added / updated specs:
    - conda


The following packages will be downloaded:

    package                    |            build
    ---------------------------|-----------------
    _anaconda_depends-5.2.0    |           py36_3           5 KB  defaults
    anaconda-custom            |           py36_1           2 KB  defaults
    ------------------------------------------------------------
                                           Total:           8 KB

The following NEW packages will be INSTALLED:

  _anaconda_depends  pkgs/main/win-64::_anaconda_depends-5.2.0-py36_3

The following packages will be UPDATED:

  ca-certificates                       2021.7.5-haa95532_1 --> 2022.10.11-haa95532_0
  libpng                                  1.6.34-h79bbb47_0 --> 1.6.37-h2a8f88b_0
  openssl                                 1.1.1k-h2bbff1b_0 --> 1.1.1s-h2bbff1b_0
  sqlite                                  3.23.1-h35aae40_0 --> 3.39.3-h2bbff1b_0

The following packages will be DOWNGRADED:

  anaconda                                     5.2.0-py36_3 --> custom-py36_1


Proceed ([y]/n)?

It went through without problem. But I am hesitant to hit yes.

Can someone explain the differences in the result of install and update, for an existing package?

Here there is an identification of the difference for a real case, but without explanation. If the differences were in the dependencies installed/updated, I guess the option not duly taking care of dependencies would leave an inconsistent state.